Valence, a tech platform and professional network launched last year that connects Black founders, announced its inaugural funding network Thursday. The list includes investors at top firms including Sequoia Capital, Accel and Upfront Ventures.
"For years, Black entrepreneurs have been told that Silicon Valley is a meritocracy, but at the same time most haven't had access to the top networks, the warm introductions, and the mentorship that underpin lasting success in tech. Valence is upending this completely by bringing the top VCs to compete for the best Black entrepreneurs." said Valence co-founder and general partner at Upfront Ventures, Kobie Fuller. "We want to even the playing field with the goal of exponentially growing the number of Black-owned startups that get funded."
<p><a href="https://dot.la/lots-of-talk-but-little-action-how-can-venture-capital-solve-its-whiteness-problem-2646188887.html" target="_blank">Only 4% of VC employees are black</a>, according to a 2018 survey by the National Venture Capital Association, an industry trade group. Just 10% of VC-backed companies in Los Angeles are run by a person of color or a woman, according to PledgeLA. </p><p>However, the true numbers are likely much lower because those survey – like all others examining diversity — are self-reported. </p><p>Valence also announced that is has appointed tech and entertainment veteran Guy Primus as chief executive officer.<br/></p><p>"Facilitating success in the innovation economy is key to Valence's mission. By creating the Valence Funding Network, we are eliminating one of the most formidable structural obstacles to success—the access to venture investors." said Primus. </p><p>Here are the inaugural funding members: </p>
<ul><li>645 Ventures</li><li>Nnamdi Okike</li><li>Accel</li><li>Rich Wong</li><li>Base10</li><li>Ade Ajao</li><li>Bessemer</li><li>Elliott Robinson</li><li>Capital G</li><li>Gene Frantz</li><li>Collab Capital</li><li>Jewel Burks</li><li>Concrete Rose</li><li>Sean Mendy</li><li>Defy Partners</li><li>Nabeel Hyatt</li><li>Techsquare Labs</li><li>Upfront</li></ul>
<ul><li>Neil Sequiera</li><li>Equal Ventures</li><li>Richard Kerby</li><li>First Round</li><li>Josh Kopelman</li><li>Forerunner</li><li>Brian O'Malley</li><li>Foundry</li><li>Brad Feld</li><li>General Catalyst</li><li>Peter Boyce</li><li>GGV</li><li>Hans Tung</li><li>Greylock</li><li>Sarah Guo</li><li>Jordan Fudge</li><li>Spark Capital</li><li>Rebecca Kaden</li></ul>
<ul><li>High Alpha</li><li>Scott Dorsey</li><li>Lightspeed</li><li>Mercedes Bent</li><li>Lux</li><li>Deena Shakir</li><li>Outlander</li><li>Paige Craig</li><li>Precursor</li><li>Charles Hudson</li><li>Redpoint</li><li>Annie Kadavy</li><li>Sequoia</li><li>Jess Lee</li><li>Sinai Ventures</li><li>Paul Judge</li><li>Union Square</li><li>Kobie Fuller</li></ul>
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'I Don't Live in a World Where Fairness is an Option': Navigating the Venture World as a Black VC
Jun 18 2020
Editor's note: This is the second in our series examining diversity in venture capital. Read the first and third stories in this series and sign up for our newsletter to get the latest updates.
Entrepreneurs usually fall over each other for the chance to meet with people like Kobie Fuller, a partner at Upfront Ventures, one of Los Angeles' oldest and most prestigious venture firms, and a former investor at Accel, one of Silicon Valley's most well-known early-stage firms.
But Fuller, who is black, had become used to being overlooked at parties and mistaken for junior-level staff.
"I have been at network events where people don't know who I am, they assumed I was a random moron," he said. "They treat you like you are not in the room or you are some wait staff."
<p>Fuller said as his profile has risen, he's encountered fewer slights. But the experience is shared by other black venture capitalists who work in the mostly white, elite world of high-stakes capital, where there are few people of color. </p><p>The venture world, along with the rest of the United States, has been reckoning with the aftermath of the George Floyd killings and the deep inequities it exposed. </p><p>dot.LA talked to more than half a dozen black VCs, most in Southern California, that say they are constantly navigating the issue of race. The burden is often compounded by the fact that they are often the only black person in the room. </p><p>"Saying the same thing over and over again is exhausting, but I think what that represents is a bigger issue of feeling like you are the one that always has to do it," said Sydney Sykes, a co-founder of Blck VC and a former analyst at NEA who has been advocating to diversify the ranks inside firms. </p><p>"Think about walking into a boardroom. A black person walking into a boardroom is really going to notice they are the only black person in the room. The white person maybe will notice there's a black person in the room, but they will be like, 'oh, I don't see color' and they will feel pretty good about that."</p><p>"But the truth is we need to walk into every room and be aware when black people don't have a seat at the table," she said.</p><p>Earlier this week, the National Venture Capital Association <a href="https://dot.la/venture-top-industry-group-launches-nonprofit-to-diversify-its-ranks-2646175232.html" target="_self">announced a $5.5 million</a> effort to add diversity to its ranks. The effort is an acknowledgment that venture, which fueled the modern tech industry by pouring boatloads of cash into aggressively growing startups, has failed to diversify. <a href="https://nvca.org/pressreleases/second-edition-of-nvca-deloitte-human-capital-survey-uncovers-progress-for-diversity-inclusion-at-venture-capital-firms/" target="_blank">Only 3% of investors</a> at firms NVCA surveyed are black, though most firms didn't reply to it, suggesting the true number may be much smaller. </p><p>That has consequences beyond venture firms and for the culture at large, as those dollars rarely trickle down into communities of color. To see the connection between venture and the wealth gap, Harvard professor Paul Gompers said you can turn to places like Silicon Valley where largely white founders and investors have quickly become millionaires and billionaires and exacerbated income inequality. Across the U.S., <a href="https://www.brookings.edu/blog/up-front/2020/02/27/examining-the-black-white-wealth-gap/" target="_blank">white families on average are ten times wealthier than black familie</a>s, according to the Brookings Institute. </p><p>"Part of the reason these communities have seen the income gap grow is because they've not sufficiently been part of these two sectors," he said. "It doesn't explain everything, but certainly it is a contributor."</p><p>On one side are founders who raised $133 billion last year and often come from other entrepreneurial companies like Amazon or Google that have historically lacked diversity. </p><p>On the other side is the mostly white venture industry made up of around 1,300 funds that relies on personal networks which often don't extend beyond elite schools or the coasts. </p><p>Gompers adds the most successful venture funds tend to be self-replicating, attracting a top-flight but homogenous group of entrepreneurs who in turn make them more money. </p><p>Trying to crack into either world is tough. </p><p>Brentt Baltimore, an investor at Greycroft, said he broke into the industry largely because he found a mentor who helped him learn the unacknowledged code that exists.</p><p>"Somebody sat me down and helped me understand this game," he said. "There's a certain way that you move and shake here. That's not something you can learn online." </p><p>He and others like Sykes are trying to figure out how to make the industry more accessible for others. </p><p>"It's one thing to get in the door," he said. "It's another thing to build structure in the space." </p><p>Even when black investors are hired, there're often entrenched racial assumptions.</p><p>"When I am in the room, sometimes it's assumed I am the assistant," said Jawhara Tariq, an investor at Moonshots Capital. "I don't know if it's the racial angle or the gender or both." </p><p>It's happened enough times, she said, that she begins to question herself. </p><p>"It's not like the first person who has done it, but the tenth," she said. "It makes me start to feel like I shouldn't be there."</p><p>The cumulative effect of those situations is to place on her a mental burden that her colleagues don't carry. Crystal Clements, a clinical psychologist, said that being the only black person at a company is challenging. "There are common themes that tend to surface," she said. Some black people assimilate into white culture while others push toward perfectionism in order to overcome negative stereotypes. Others ignore the microaggressions, despite the sting believing the merit of their work is the most important metric of success. </p><p>But it doesn't erase the fact that some people just don't see black people as investors, a bias that isn't just shaken overnight. </p><p>Austin Clements, a partner at early stage venture firm OPV and the managing director at Grid110, said he has chosen to ignore much of those experiences. </p><p>"I don't live in a world where fairness is an option," he said. "I am certain that over the time in my professional career there are things that have made it difficult as an African American. I have put so little time in acknowledging those instances because that's what I expected."</p><p>But that milieu may ultimately hurt venture's bottom line. </p><p>Gompers, who looked at the performance of venture portfolios that had more diverse teams, found they achieved better returns than homogenous teams. </p><p>"The importance of diversity is all about making better decisions," he said. "If you all look the same and have the same experiences, you are gonna make the same mistakes."</p><p>That's been Fuller's operating assumption. Last year, he launched a social networking platform for black professionals, Valence, with the idea of building them more access and eventually more wealth. </p><p>The idea came to him after he was sought out — for the umpteenth time — by corporate ventures and others looking for black founders. </p><p>"People build their own personal network that mirrors who they are," he said. "People would say, 'Kobie, you're black. You must know some black people'."</p><p>"I would be lying if there wasn't a bit of tokenism," Fuller said. "But, diverse organizations do perform better."</p><p><em>Editor's note: This is the second in our series examining diversity in venture capital. Read the <a href="https://dot.la/lots-of-talk-but-little-action-how-can-venture-capital-solve-its-whiteness-problem-2646188887.html" target="_self">first</a> and <a href="https://dot.la/calpers-venture-capital-diversity-2646204153.html" target="_self">third</a> stories in this series and <a href="https://dot.la/st/newsletters" target="_self">sign up for our newsletter</a> to get the latest updates.</em></p><em><br/></em><p><em>Illustration by Candice Navi</em><br/></p>
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Here are the latest updates on news affecting Los Angeles' startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for more.
Today:
- New Streaming Data Underline Quibi's Struggles
- John Legend Takes to Wave's Virtual Stage
- TIkTok Reportedly Rakes in $200M
- Snap Rolls Out Pride Lenses For U.S. Regions
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New Streaming Data Underline Quibi's Struggles
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vbWVkaWEucmJsLm1zL2ltYWdlP3U9JTJGUVJwNjF1THhaY2wybHQxWjJ5SmNGSDd6QXQ5dmhsMS13VWxCUVU4SWNFOTVqWWxZY3NxZkJjOWhLVEk4T2RFbmUxaUZ4NFQ5Yzc4dWR5WTlXeW9MdW1LOFExNVdpQzQ1ZC1ZT0lUWDl0aUxILU8xUmx4clJ6M0tBUWdFVmJDM244TVh3MmprQyZobz1odHRwcyUzQSUyRiUyRmxoMy5nb29nbGV1c2VyY29udGVudC5jb20mcz0xODkmaD04NDUyMTY4Mjk0YTE5OGMwOTJkZjU3YmNhZmU5OGNjNjBjOGIxZWM0ODRlMDVlN2U4Y2Y2YTc5YzIwZDE3MTk5JnNpemU9OTgweCZjPTExNzU4Mjg2MTgiLCJleHBpcmVzX2F0IjoxNTk5MzgyMTg5fQ.a-Q2gq9m-vL_Iua4-8EQquKRzs9Akc6d5ULBzBYCjbM/img.jpg" id="202ee" class="rm-shortcode" data-rm-shortcode-id="ab3309389162b7f848f0f8304aeeb8c8" /> <p>Things started so rosily for Quibi, with a fat $1.75 billion fundraise, loads of content deals with A-listers, and a <a href="https://variety.com/2019/digital/news/quibi-sells-out-advertising-inventory-150-million-1203380540/" target="_blank">sold-out advertising slate</a>. But lately it's been nothing but bad news. </p><p>Recent reports have depicted all kinds of troubles: <a href="https://www.wsj.com/articles/quibi-jeffrey-katzenbergs-on-the-go-streaming-bet-adjusts-to-life-on-the-couch-11588266129" target="_blank">low demand</a>, <a href="https://deadline.com/2020/04/quibi-marketing-megan-imbres-leaves-launch-1202915748/" target="_blank">executive departures</a>, <a href="https://www.wsj.com/articles/advertisers-seek-to-revise-deal-terms-with-streamer-quibi-11590519825" target="_blank">unhappy advertisers</a>, an <a href="https://www.latimes.com/entertainment-arts/business/story/2020-05-04/elliott-management-funds-ekos-lawsuit-against-quibi" target="_blank">ongoing intellectual property lawsuit</a>, and a <a href="https://www.wsj.com/articles/quibi-katzenberg-whitman-streaming-startup-11592157291" target="_blank">potential rift between its two chiefs</a>, Jeffrey Katzenberg and Meg Whitman. All this on top of a global pandemic that has <a href="https://www.nytimes.com/2020/05/11/business/media/jeffrey-katzenberg-quibi-coronavirus.html" target="_blank">done no favors to the company's initial value proposition</a> of serving the "on-the-go" moments of consumers' lives.</p><p>Quibi is apparently trying to respond. Variety reported on Wednesday that the L.A.-based mobile-first, short-form video platform has been <a href="https://variety.com/2020/digital/news/quibi-streaming-roku-amazon-fire-tv-1234637152/" target="_blank">negotiating with Amazon and Roku</a> to accelerate its availability onto connected devices. Company executives have also <a href="https://www.wsj.com/articles/quibi-asks-senior-executives-to-take-10-pay-cut-11591206642" target="_blank">reportedly taken pay cuts</a>. </p><p>Data provided to dot.LA by <a href="https://www.justwatch.com/us/about" target="_blank">JustWatch, an analytics firm</a> with offices in L.A. and Berlin, show that in May, Quibi and its content library captured just 0.5% of the U.S. streaming audience's interest. Netflix led the way at 31%, followed by Amazon Prime Video at 18%, Hulu at 11%, and Disney+ at 8%. </p><p>Industry observers have frequently cited Quibi's lack of a hit show, combined with its nonexistent back catalog of familiar favorites, as a key reason why it has struggled since its April launch.</p><p>JustWatch's data suggest that <em>Reno 911!</em>, which debuted on Quibi in early May, was far and away the most popular show on the app last month. The firm estimates that the rebooted police satire was four times more popular than the runner-up, <em>The Stranger</em>, and 12 times more popular than Quibi's third-ranked title, <em>Most Dangerous Game</em>.</p><p>Quibi did not immediately respond to a request for comment. </p>John Legend Takes to Wave's Virtual Stage
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQwMDU4MC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYwMzQxNzg2Nn0.EWmJ9avEF-GlUzE4JTaXXPCP_opTqqoefsDLj9HvRX8/image.jpg?width=980" id="f35ac" class="rm-shortcode" data-rm-shortcode-id="6319a8cc4e2b1540a0423135472fae0a" data-rm-shortcode-name="rebelmouse-image" /> <p><em></em>Wave, an entertainment technology company that turns performers into digital avatars and puts them on virtual stages where they can entertain and interact with fans, announced that John Legend will perform on the platform on Thursday, June 25th at 3:00pm PT.<br></p><p>Legend had previously been slated to participate in the L.A.-based entertainment firm's "One Wave" virtual concert series, but no date had been announced before Wednesday.</p><p>The performance, <a href="https://go.wave.watch/johnlegend" target="_blank">available via YouTube and Twitter</a>, will feature new songs from the EGOT winner's upcoming album, "Bigger Love." Leveraging the Wave platform's interactivity, attendees will be able to send "visual gifts" throughout the performance, with 100% of the proceeds going to Legend's FREEAMERICA criminal justice reform campaign.</p><p>Wave is partnering with PEOPLE for the Legend performance. Sponsors also include Yamaha and Valence, a "new social network addressing diversity by connecting Black talent with economic opportunity." The Ad Council will also be providing public service announcements and resources during the show for fighting racial injustice.</p><p>Fresh off <a href="https://dot.la/wave-virtual-concerts-2646166627.html" target="_blank">a $30 million Series B fundraise,</a> Wave has hosted over 50 events, for up to 400,000 people at a time.</p>TIkTok Reportedly Raked in $200M
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzI4MTA2NC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxMTI4NDc0M30.F2EmQwLKpL0bqpvqRnKtfsESZGRp-fL7HNtQzPApv1I/img.jpg?width=980" id="f162f" class="rm-shortcode" data-rm-shortcode-id="c9e4b7ecdb23a3681081ff2365c5e5fa" data-rm-shortcode-name="rebelmouse-image" /><p><em>The Information</em> <a href="https://www.theinformation.com/articles/tiktoks-u-s-revenues-expected-to-hit-500-million-this-year" target="_blank">reported Wednesday</a> that TikTok earned between $200 million and $300 million in revenue worldwide in 2019. The news site also said the Culver City-based social media phenomenon's 2020 revenue goals are $500 million in the U.S. alone. These figures follow <a href="https://www.bloomberg.com/news/articles/2020-05-27/bytedance-is-said-to-hit-3-billion-in-profit-as-revenue-doubles?sref=QjdS4d5U" target="_blank">a separate report from</a> <em><a href="https://www.bloomberg.com/news/articles/2020-05-27/bytedance-is-said-to-hit-3-billion-in-profit-as-revenue-doubles?sref=QjdS4d5U">Bloomberg </a></em><a href="https://www.bloomberg.com/news/articles/2020-05-27/bytedance-is-said-to-hit-3-billion-in-profit-as-revenue-doubles?sref=QjdS4d5U">last month</a> that TikTok's parent company ByteDance raked in $17 billion in 2019, and pocketed over $3 billion in profit.<br></p><p>A TikTok company spokesperson would neither confirm nor deny the figures, saying "we don't publicly share company data or revenue metrics."</p><p>In response to <em>The Information's </em>report that TikTok is considering hiring an American executive to oversee its sales team, the spokesperson said, "We are always looking at new opportunities to scale and attract great talent for our teams."</p><p>TikTok, which is <a href="https://dot.la/kevin-mayer-leaves-disney-for-tiktok-chapek-regime-moves-on-2646028687.html" target="_blank">now under the leadership of former Disney streaming executive Kevin Mayer</a>, will be participating later this month in the <a href="https://www.iab.com/events/newfronts-2020/#index-1" target="_blank">NewFronts, the digital media world's jamboree of presentations to woo advertising buyers</a>, which will be virtual this year.</p>Snap Rolls Out Pride Lenses For U.S. Regions
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzQwMDU4Ni9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTY0MjI1MTkyM30.4r9f-Ek_dqXAquPqNEemT4LZu26rUe-0-EhYp0Nxkjc/image.png?width=980" id="9d768" class="rm-shortcode" data-rm-shortcode-id="3e2ed82098da7c317b825f37551a1847" data-rm-shortcode-name="rebelmouse-image" />Courtesy of Snap
<p>June is Pride Month, and instead of the annual in-person festivities, <a href="https://lapride.org/" target="_blank">L.A. Pride</a> has been celebrating its 50th anniversary with a series of virtual events. Now, Snap is adding augmented reality (AR) to the mix. The Santa Monica company released five new AR lenses on Wednesday in partnership with L.A.'s <a href="https://www.pridemedia.com/" target="_blank">Pride Media</a>. The "community of storytellers, innovators and influencers" reaches over 6 million monthly unique users, which Pride says surpasses any other LGBT media brand.</p><p>The new lenses, which is Snap-speak for the digital overlays that transform a camera image, "spotlight diverse, queer-identifying changemakers advancing equity for all people in every U.S. state," according to a company statement. The release is paired with the annual "<a href="https://www.advocate.com/champions-pride" target="_blank">Champions of Pride</a>" issue from <em>The Advocate</em>, a Pride Media subsidiary publication.</p><p>A Snap spokesperson describes the five new lenses as "art gallery-style spaces" that help Snap's young-leaning users learn about LGBTQ+ and BIPOC advocates. These include "Mighty" Rebekah, a 13-year-old who successfully lobbied for an LGBTQ-inclusive school curriculum in her home state of New Jersey, and Brandon Wolf, the first survivor of the 2016 Pulse nightclub shooting in Orlando to testify before Congress.</p><p>Snap tapped five designers from its official <a href="https://lensstudio.snapchat.com/creators/" target="_blank">lens creator cohort</a> to represent five U.S. regions. Each creator has regional ties and either identifies as LGBTQ+ or an ally, the company says.</p><p>Brielle Garcia, designer of the Pacific West lens, says, "I wanted to work on a Pride lens that was not just a celebration of the past, but a celebration of our future. I hope these Lenses can be an encouragement to everyone in the LGBT community. Encouragement that people as unique as you can have success in business, politics, art, or anything you can dream of. This message is important to me because this kind of success has not always been available to us. So many amazing people have come before us to pave the way and this is a celebration of their success and a guide to what you can achieve."</p><p>Joshua Keeney, repping the Northeast, says, "The takeaways that I want people to have with this Lens is that there is incredible diversity within the LGBTQ community, that everyone can be a champion in their own way, and can bring changes to their own communities."</p>From Your Site Articles
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